Second Charge Lending
Second charge lending improves in July – FLA
Second charge lending picked-up in July after a sluggish second quarter of the year, according to data from the Finance and Leasing Association (FLA).
The value of new business completed was up by 6% to £98m in the month while the number of new agreements rose by 5% to 2,162, both compared to July 2017.
In the twelve-month period ending in July both the value of new business and number of new agreements rose by 4%.
The first half of 2018 was punctuated by significant falls in monthly activity during March and June – with the value of business and number of deals completed both down.
This has been reflected in the rolling three-month totals for new business value and transactions which were largely stable compared to the same three months last year.
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FLA head of consumer and mortgage finance Fiona Hoyle (pictured) said: “The second charge mortgage market made a positive start to the third quarter, with new business in July up 6% by value and 5% by volume.
“The number of new agreements in this market grew by 2% in the first seven months of 2018, in line with expectations of modest single-digit growth in 2018 overall.”
July also saw significant growth in credit card and car finance, according to FLA figures.
Car finance grew 11% to £2.89bn while credit cards and personal loans also rose by 11% to £4.5bn.